Latest news with #intra-Asean
The Sun
2 days ago
- Business
- The Sun
Malaysia champions regional digital trade under 2025 Asean Chairmanship
KLANG: Malaysia is leading efforts to boost digital trade as the 2025 Asean chair and support the region's economic recovery. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said under Malaysia's leadership, Asean is poised to address critical challenges such as supply chain disruptions, digital transformation, and climate change. He stated that the country is collaborating closely with regional partners to implement the Asean Comprehensive Recovery Framework (ACRF), which aims to ensure a robust and sustainable recovery from the economic impacts of recent global crises. 'One of Malaysia's key priorities is to enhance the Asean Single Window, a digital platform that streamlines trade processes across member states. 'By reducing bureaucracy and improving trade efficiency, the ASW will play a pivotal role in strengthening regional supply chains and boosting intra-Asean trade, which currently accounts for nearly 25% of total Asean trade,' he said at the groundbreaking ceremony of YCH Group's RM500 million supply chain city Malaysia (SCC MY). Additionally, he said Malaysia is championing the development of the Asean Digital Economy Framework Agreement (DEFA), which seeks to harmonise digital trade regulations and promote cross-border e-commerce. 'This initiative will not only enhance digital connectivity but also create new opportunities for businesses and consumers across the region,' he said. The Asean Comprehensive Recovery Framework (ACRF) is a strategic initiative adopted by the Association of Southeast Asian Nations (ASEAN) during the 37th Asean Summit on November 12, 2020. It serves as the region's consolidated exit strategy from the Covid-19 crisis, aiming to guide Asean's recovery efforts across various sectors and stages of recovery. The framework emphasises that digitalisation will be crucial to ensuring continuity in trade and services, particularly during crises. It calls for wider acceptance of digital documents, simplified customs procedures, and increased use of local currencies to reduce transaction costs and enhance financial integration. To support this, several Asean member states have begun relaxing documentation requirements and adopting digital platforms such as the Asean Single Window for customs declarations and certificates of origin, although inconsistencies remain between countries and agencies. Efforts are also underway to address gaps in infrastructure, data governance, cybersecurity, and legal frameworks—critical enablers for a seamless, secure regional digital economy under DEFA.
The Star
4 days ago
- Business
- The Star
Asean voices deep concern over US tariffs, commits to regional economic unity
KUALA LUMPUR: Asean leaders have voiced deep concern over the United States' recent move to impose unilateral sweeping tariffs, during the 46th Asean Summit. According to the Chairman's statement issued following the conclusion of the summit on Tuesday, the leaders had affirmed that they will continue to engage the US in a frank and constructive dialogue on the matter and commit not to impose any retaliatory measures in response to US tariffs. "We express deep concern over the recent announcement by the US to impose unilateral tariffs and their potential impact on our economies. "The uncertainties arising from these tariffs and potential retaliation could heighten volatility in both capital flows and exchange rates,' the statement read. Asean leaders reaffirmed the bloc's commitment towards regional unity, economic stability and practical cooperation in navigating external challenges, it said. They also reaffirm commitment to strengthen financial resilience and accelerate financial integration within Asean, thus supporting greater intra-Asean trade and Investment integration, amid rising global trade tensions. "We remained committed to Asean as a reliable economic partner and will work to foster a strengthened economic cooperation framework with the US, particularly in high-value and future-oriented sectors,' the statement read. They also pledged to strengthen and expand economic links with Asean's external partners, including with Dialogue Partners, and to seek out opportunities for cooperation with new partners. The Asean Summit, which drew leaders and high-level delegations from Asean and partner countries, was held under Malaysia's 2025 Asean Chairmanship theme 'Inclusivity and Sustainability'. This year marks Malaysia's fifth term as Asean Chair, following previous chairmanships in 1977, 1997, 2005 and 2015. - Bernama
New Straits Times
4 days ago
- Business
- New Straits Times
Anwar's Asean leadership a model of diplomacy in Myanmar crisis
KUALA LUMPUR: This year's ASEAN chairmanship under Prime Minister Datuk Seri Anwar Ibrahim has drawn strong praise from world-renowned economist Professor Dr Jeffrey D. Sachs. He described Anwar's efforts in addressing the Myanmar crisis as both constructive and aligned with the regional grouping's collective aspirations. Sachs, a Columbia University professor and President of the UN Sustainable Development Solutions Network, said Malaysia's proactive approach reflects responsible diplomacy, not interference, in promoting Asean peace and stability. "I think the leadership of Asean in trying to make sure that there is peace within the Asean region is extremely important and very constructive. "That's not interference in the way we should object to," he said in a press interview after attending the 2nd Asean-GCC Summit at the Kuala Lumpur Convention Centre (KLCC) today. He commended Anwar's role as Asean Chair in addressing the Myanmar situation, describing the Prime Minister as "a remarkable leader in his own right" who is leveraging his position to facilitate intra-Asean solutions. "This is not interference in the sense of one country butting into the internal affairs of another. It's about helping Asean succeed, thrive and be peaceful internally. "I strongly support what Prime Minister Anwar Ibrahim is trying to do," Sachs said. When asked whether Asean should consider reforming its long-standing principle of non-interference in light of the ongoing Myanmar crisis, Sachs did not offer a specific policy recommendation but instead highlighted a broader global trend towards stronger regional cooperation. "We're in a period where regional groups all over the world, not only Asean, are becoming stronger internally because they recognise that the success of each individual country depends on the success of the group," he said. He added that Asean's growing diplomatic role, both internally and globally, is vital at a time when countries face increasing uncertainty and pressure, including from global powers like the US. "In this context, a strong Asean is extremely important, and real leadership within Asean is essential. Prime Minister Anwar Ibrahim is providing exactly that this year. It's a very successful presidency," Sachs remarked. Referring to recent regional meetings, including the 46th Asean Summit, the Asean-GCC meeting, and the Asean-GCC-China dialogue, he said these high-level engagements reflect Malaysia's effective stewardship and Asean's commitment to unity and cooperation. "These meetings are very important and a very successful initiative of Malaysia's presidency," he said. Among the Asean leaders attending the events are the Sultan of Brunei, Sultan Hassanal Bolkiah; Indonesian President Prabowo Subianto; Cambodian Prime Minister Hun Manet; Lao Prime Minister Sonexay Siphandone; Vietnamese Prime Minister Pham Minh Chinh; Philippine President Ferdinand Marcos Jr.; Singaporean Prime Minister Lawrence Wong; and Thai Prime Minister Paetongtarn Shinawatra. Also present at the summit are Timor-Leste's Prime Minister, Kay Rala Xanana Gusmão, as an Observer, and Asean Secretary-General Dr Kao Kim Hourn. GCC delegates at the summit include the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, Bahrain's Crown Prince and Prime Minister, Salman Hamad Al Khalifa, and Kuwaiti Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah. Oman's Deputy Prime Minister Sayyid Asaad bin Tarik al Said, Saudi Arabia's Foreign Minister Prince Faisal Farhan Al Saud and UAE Supreme Council Member and Ruler of Ras Al Khaimah Sheikh Saud bin Saqr Al Qasimi are also in attendance.
The Star
5 days ago
- Business
- The Star
‘Commendable earnings growth' drives 1Q25 results
PETALING JAYA: Malaysia's largest banking group began its new financial year with a decline in interest income, amid cautious business sentiment and moderated credit demand. However, thanks to a bigger decline in interest expense driven by lower deposits, Malayan Banking Bhd (Maybank) managed to report a stronger net interest income on a year-on-year basis for the first quarter ended March 31, 2025 (1Q25). Maybank president and group chief executive officer Datuk Khairussaleh Ramli described the lender's 1Q25 results as reflecting 'commendable earnings growth', underpinned by stable net interest margins, better asset quality and disciplined cost management. Nonetheless, Khairussaleh flagged that the global economic outlook remains uncertain. That said, he expects continued growth in the markets where the group operates. In a filing yesterday, Maybank reported a 6.5% y-o-y drop in interest income for 1Q25. After adjusting for expenses, net interest income rose 2.2% y-o-y to RM3.22bil. The net interest margin remained stable at 2.04%, supported by a 2.3% increase in net fund-based income to RM4.95bil. This was on the back of a 3.2% y-o-y loan growth across all home markets and key business segments. However, annualised loan growth was comparatively lower at 2.2%, reflecting the current operating environment, which continues to be impacted by cautious business sentiment and moderated credit demand. Non-interest income (NOII), which contributed 35.8% of total income, stood at RM2.76bil, supported by improved wealth management performance. Overall, Maybank's net profit for 1Q25 rose 4% y-o-y to RM2.59bil. Looking ahead, Khairussaleh said Maybank continues to strengthen its position across Asean, capitalising on intra-Asean and Asean + opportunities, particularly in trade, investment and cross-border connectivity. 'Our focus on completing M25+ (corporate strategy) remains steadfast, as we continue to drive meaningful progress on our strategic thrusts – strengthening our core, accelerating digital transformation and embedding sustainability in everything we do. 'We are particularly encouraged by the growing impact of our values-based solutions, which continue to create tangible benefits for our customers, while delivering positive social impact and environmental outcomes across the markets we serve,' he added. On loan performance, Maybank reported y-o-y increases across all its home markets: Malaysia (8%), Singapore (5.9%) and Indonesia (0.8%). On an annualised basis, loan growth was led by Malaysia at 6%, followed by Singapore at 3.3%. Meanwhile, the Indonesian market slid by 17.2%, mainly in the Global Banking division, due to the portfolio rebalancing initiative. The group's deposit grew by 5.1% y-o-y with Singapore seeing a 17.9% jump, while Malaysia recorded a modest 4.4% increase. On an annualised basis, deposits in Malaysia expanded by 3.4%, while Singapore and Indonesia contracted by 0.2% and 24.8%, respectively. The deposit reduction in Indonesia aligns with the portfolio rebalancing and releasing of high-cost deposits. In 1Q25, Maybank posted a net loss of RM670.1mil on its foreign-exchange translation, compared with a net gain of RM207.5mil in 1Q24. Overhead costs were also higher in 1Q25, rising by 2.3% y-o-y to RM3.7bil, driven by higher personnel expenses, marketing costs and software maintenance expenses. On a segmental basis, Maybank's Group Community Financial Services registered a 5.5% y-o-y increase in pre-tax profit for 1Q25 to RM1.48bil, supported by a 1.9% y-o-y growth in net operating income to RM4.5bil. Maybank attributed this to steady growth in both NOII and net fund-based income, which rose 6.5% and 0.4%, respectively. Meanwhile, the Group Global Banking (GGB) division recorded a 9.8% y-o-y increase in pre-tax profit for 1Q25 to RM1.76bil, driven by higher income and lower net impairment losses. Corporate loans grew across GGB's core markets, led by Malaysia with a 6.3% increase, while Singapore was up by 0.4%. On the funding side, customer deposits increased by 1.4% y-o-y, supported by a solid 4.8% growth in current account savings account, with Singapore delivering a substantial 64.5% increase. > TURN TO PAGE 2 The group's Islamic Banking business also posted a strong growth, with pre-tax profit rising 38.8% y-o-y to RM1.14bil in 1Q25, underpinned by a stable 1.3% increase in total income to RM2.13bil. Additionally, Etiqa Insurance & Takaful's underwriting income surged nearly threefold y-o-y to RM354.3mil, driven by contingency surplus release for the Family Takaful portfolio and better claims experience in the General/General Takaful portfolio. Maybank's Indonesian arm posted a robust 290.9% y-o-y increase in pre-tax profit to 506 billion rupiah in 1Q25, driven mainly by a significant rise in NOII and improved provisions. The group's Singaporean arm registered a 20.1% y-o-y rise in net fund-based income to S$193.1mil, benefiting from lower funding costs and write-backs in term loans effective interest rate adjustment. However, NOII dipped slightly by 1.6% to S$143.5mil due to lower Treasury income. Overall, Maybank reported asset quality remained healthy in 1Q25, with pre-provisioning operating profit rising 1.3% y-o-y to RM3.97bil. Annualised return on equity improved to 11.3% from 11.1% in 2024. Net impairment provisions also improved 21.7% to RM426.4mil on lower loan provisions by 17.9% to RM0.38bil. As a result, the net credit charge-off rate eased to 23 basis points (bps) from 2 8bps in the previous quarter. The gross impaired loans ratio improved by 5 bps to 1.27% in 1Q25 compared with 1Q24, while loan loss coverage remained strong at 122.9%. Maybank also maintained robust capital and liquidity positions in 1Q25 with a Common Equity Tier 1 capital ratio of 14.88% and total capital ratio of 17.96%. The group's liquidity coverage ratio remained stable at 135.7%, well above the regulatory requirement of 100%.
Business Times
5 days ago
- Business
- Business Times
Batam, Johor, Da Nang: Asean's new growth cities
[HO CHI MINH CITY] Infrastructure development and breakthrough incentives within special economic and trade zones are drawing global businesses, investors and talent beyond Asean's traditional metropolises to emerging 'second cities' such as Johor Bahru, Da Nang and Batam. While smaller and less globally known than capital cities or primary metropolises like Kuala Lumpur, Jakarta, or Ho Chi Minh City, these rising hubs are capturing attention for their investment potential, quality of life and innovation ecosystems. 'These shifts reflect a broader trend of decentralisation, synergistic and regional growth within Asean,' said Govinda Singh, executive director at Canada-based investment management company Colliers International. He added: 'What sets successful rising cities apart is their ability to enable ease of doing business, investment in infrastructure and long-term policy stability.' Why 'second cities' are taking off In today's competitive environment, he noted that investors seek clear value propositions, such as cost advantages, special economic zones, talent pipelines and logistics connectivity. 'Ultimately, it's not just about being cheaper than the capital cities; it's about leveraging comparative strengths, being smarter, more specialised and investment-friendly,' he added. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Sam Cheong, head of group foreign direct investment advisory at UOB, observed that traditional economic hubs like Singapore, Jakarta or Ho Chi Minh City are increasingly facing resource constraints to accommodate the needs of foreign direct investment effectively. This has given rise to the emergence of new hubs, especially those near established ones. The Business Times takes a closer look at these emerging cities that have been in the spotlight in recent years. Johor Bahru: Riding Singapore's ripple Johor Bahru's strategic southern location, less than 30 km from Singapore, positions it uniquely. The Johor-Singapore Causeway, a vital link handling over 300,000 daily crossings, is one of the busiest border checkpoints in the world. In January 2025, Malaysia and Singapore officially launched the Johor-Singapore Special Economic Zone (JS-SEZ), a cross-border initiative by both nations to harness the power of their proximity. Siva Shanker, chief executive officer of the estate agency at Rahim & Co International, said: 'With ongoing infrastructure projects and various incentives in place, the JS-SEZ presents compelling opportunities for business owners considering relocation or expansion in this region.' Amid the ongoing global trade headwinds, Dr Wong Chin Yoong, an economics professor at Universiti Tunku Abdul Rahman Malaysia, said that the potential of cities like Johor Bahru could drive greater intra-Asean collaboration, as the region requires a development strategy that buffers it from geo-economic risks. 'This necessitates greater intra-Asean interdependence through cooperative initiatives that minimise exposure to super power competition, enhance regional resource sharing, and cultivate Asean as a significant regional power in both production and consumption,' he said. The demand for Johor Bahru real estate is rising on the back of the progress made in the building of the railway shuttle linking Singapore and Johor Bahru and the establishment of the JS-SEZ. PHOTO: BT FILE Batam: Indonesia's fast-charging digital hub In Indonesia, Batam, located about 20 km south of Singapore, is also fast rising as a key hotspot for investments for data-centre operators, power developers and semiconductor manufacturers, giving Johor a run for its money as the top destination for companies expanding beyond the city-state. The growth is especially bolstered by Batam's Special Economic Zone perks and direct subsea cable links that tether it seamlessly to Singapore's digital backbone. For example, the Nongsa Digital Park, located on Batam's north-eastern tip and designed to support the digital economy, is a few kilometers away from the landing of 13 submarine cables that link it directly with various parts of Indonesia, Singapore, Malaysia and the US West Coast. The city's biggest win so far was Apple's landmark US$1 billion commitment to produce AirTags on the island, marking a major milestone in Batam's evolution into a regional tech and data hub. Nongsa Digital Park is a designated Special Economic Zone in Indonesia focusing on digital technology and tourism activities. PHOTO: NONGSA DIGITAL PARK Da Nang: From Vietnam's holiday haven to investment hotspot Da Nang, one of Vietnam's most popular tourist destinations, is now showcasing a new identity – that of an investment hub. The city is strategically located in central Vietnam, between the country's two major economic centres in the north and the south, Hanoi and Ho Chi Minh City, respectively. It is home to two deep-water ports, Tien Sa Port and the developing Lien Chieu Port, which are vital gateways in the eastern extremity of the East-West Economic Corridor, connecting Vietnam, Laos, Thailand and Myanmar across the Greater Mekong Sub-region. 'Naturally, the combination of the holiday lifestyle and the business lifestyle will be a magnet for a lot of people,' said Andy Khoo, managing director at Terne Holdings, a Singapore-based investment group. Starting January 2025, Da Nang became the first city in Vietnam officially approved to pilot a Free Trade Zone. Plans are afoot to develop it across 10 dispersed locations connected to Lien Chieu seaport and Da Nang International Airport. Another key driver is its designation as one of the two locations for Vietnam's international financial hub, along with Ho Chi Minh City, with 'unprecedented' financial mechanisms being developed and the authorities actively working to attract multibillion-dollar investments. Da Nang has allocated six land parcels for the development of the city's international financial hub, including the 9.7-hectare site overlooking the estuary of the Han River. Richard McClellan, founder and principal at Ho Chi Minh City-based RMAC Advisory, said: 'With a smaller scale than Ho Chi Minh City, Da Nang offers an ideal environment to experiment with new initiatives within a controlled and managed space.' Da Nang has allocated six land parcels for the development of the city's international financial hub, including the 9.7-hectare site overlooking the estuary of Da Nang's iconic Han River (above). PHOTO: JAMILLE TRAN, BT Ayutthaya: Thailand's 'Silicon Valley' Ayutthaya is an emerging city in Thailand's central-west economic corridor, where some 40 per cent of approved foreign investment projects in the first quarter of the year are located, said UOB's Cheong. The other up-and-coming city is Samutprakarn, which is in the Bangkok Metropolitan Region. These cities are part of the evolution of Thailand – traditionally known for its tourism industry – into an industrial powerhouse, particularly through its economic corridor initiatives. The strong infrastructure connectivity to ports and airports offers a geographical advantage for several of its rising hubs. 'These cities are within an hour's drive from Bangkok and are tipped to be the 'Silicon Valley' of Thailand,' he said. 'The availability of a higher-skilled labour force can be found in these cities, and strong policy support for these prioritised sectors is drawing more high-value investment.' Ayutthaya, 70 km north of Bangkok, was once the historic capital of a kingdom and is now a tourism hotspot. The city is also a key stop on the Thai-Sino high-speed rail system currently under construction. When completed, the high-speed rail will connect Bangkok to Nakhon Ratchasima, and ultimately to China via Laos, further strengthening its position as a potential logistics hub. Ayutthaya Historical Park in Ayutthaya. Ayutthaya is where one of the six stations on the Bangkok-Nong Khai high-speed rail project is to be located. The project is part of the broader Pan-Asian Railway Network. PHOTO: PIXABAY Additional reporting by Tan Ai Leng in Kuala Lumpur, Elisa Valenta in Jakarta, and Goh Ruoxue in Singapore
